Earlier this year, US postal rates increased across most forms of delivery. First-class mail increased by about 2.5 percent, from its old 50-cent rate to the new rate of 55 cents. Rates for “marketing mail” (also known as standard mail) grew by about the same rate.
The rate increases come at a time when marketers are increasingly turning to direct mail to supplement their digital marketing efforts.
This leaves marketers with big questions: Will these rate increases impact the ROI of their direct mail campaigns? And if so, does it still make sense for marketers to include printed direct mail in their marketing mixes?
Using the Power of Location
Marketers can still realize a successful ROI on their direct marketing campaigns, but to do so, they must closely evaluate their mailing lists and remove recipients who fall outside their target markets.
“Because of rising postage costs (among other factors), the days of spray-and-pray mass mailings are ending,” says direct mail expert Paul Bobnak. “Even in a less-crowded mailbox, direct mail needs to be more precisely targeted, personalized, and relevant than ever before to grab the attention of recipients. And thanks to geomarketing, it can be.”
The best way to segment your list is location. Are all of the recipients on your list in a location that will do business with you? Are you sure?
Using locr GEOservices, you can be sure. This geocoding technology lets you validate addresses that are in a prime location to do business with you.
locr GEOservices is different from other methods of geo-demographic profiling and segmentation. We segment lists by the actual drive distance or drive time from a recipient’s home to a brand location, enabling marketers to eliminate people who perceive they are too far away.
For example, if a marketer knows that their target customer will not drive more than a half hour to get to their location, they can eliminate people who, because of routing, geography, or traffic, will take more than half hour to get to their location.
“GEOservices allows marketers to hone their direct mail efforts by focusing their lists only on those prospects that are physically closest to their location while suppressing those that don’t qualify, saving costs in print and postage,” continues Mr. Bobnak.
Let’s look at how GEOservices could help you
- Say your mailing list consists of 20,000 names and you like to mail first class
- New postage rates mean you are paying $1,000 more than you were before the increases.
- Users of GEOservices state that the service has helped them reduce the number of people outside their target area by 20 percent
- So if you reduce your list by 20 percent, you are not only saving money on postage you are targeting the right contacts in the right location.
- The end result: Less cost, better response rates, and and improved ROI for your direct mail.
Ready to put your list to the test?
Learn how GEOservices can help you beat the postal rate increases and yield a higher return. Visit the locr website or contact your local locr representative.